by Derek W. » Mon Oct 06, 2008 05:53 pm
My name is Derek. I'm new to the insurance community. I'm here to both to get advice as well as give it. If anyone has any questions regarding the life settlement process Feel free to ask me. I work in the industry and am well educated on the entire process.
Posted: Tue Oct 07, 2008 11:26 am Post Subject:
OK Derek on a 100k policy how much do you give Mr. Jones?
Posted: Fri Oct 10, 2008 12:36 pm Post Subject:
Well it all depends Lori. There are numerous variables that factor into an offer on a policy. For me to give you a legitimate answer, I'd have to know at the very least some basic information. What is Mr. Jones age? Monthly Premiums? Current Health status?
You mentioned a 100K policy. The company I work for has a special program for smaller policies such as this. We can provide an indication of value on policies 50K to 950 K within 24 hours of submission with minimal information required. We simply need...
* A completed Life Settlement Application Form.
* An illustration showing account values greater than zero in every year until age 95 or 100.
LE's may improve pricing as they would give us a more accurate view of the insured's health status.
If you have any other questions please let me know. I'd be more than happy to go further into specifics with you.
Posted: Fri Oct 10, 2008 12:40 pm Post Subject:
This is of course hypothetical...let's say Mr. Jones has a 100k policy he's 85 years old in good health for his age, and his premiums are 75 bucks a month...
Posted: Fri Oct 10, 2008 01:16 pm Post Subject:
Lori... A client with monthly premiums of $75 is incredibly rare. If you do see policies with monthly premiums this low they would definitely be of economic value. However, I would highly doubt that premiums that low would carry to age 100.
Again, for me to evaluate a policy I would need to see an illustration to age 100. If you'd like you can send me over a "hypothetical" policy. You could scrub out all client/agent names if that makes you feel more comfortable. I could then provide you with an accurate estimated value.
Posted: Fri Oct 10, 2008 01:42 pm Post Subject:
OK Derek on a 100k policy how much do you give Mr. Jones?
...sniff sniff....are those jet fumes?
Posted: Fri Oct 10, 2008 02:01 pm Post Subject:
I'm just trying to work with you here Lori...not against you. Not asking for anything from you, just trying to answer your questions accurately.
Like I said in my other post. This option is not for everyone, but often times is the best possible option for a client. In these occurrences, it is the fiduciary duty of the agent to present this option to their client.
Not only does it benefit the client, but it benefits the agent as well. The agent receives a commission, which is fully disclosed, in the transaction and continues to make commission on the monthly premiums that our investors pay.
Posted: Fri Oct 10, 2008 06:09 pm Post Subject:
I would pass on this option.
Posted: Fri Oct 10, 2008 06:58 pm Post Subject:
Take this scenario into consideration.
You have an elderly client that can no longer afford to pay his/her monthly premiums. Do you...
A.) Let the policy lapse and your client receives nothing for the years of premium payments and the agent receives nothing.
B.) Advise your client to take the Cash Surrender Value from the Insurance Carrier.
C.) Advise your client to pursue a life settlement, which typically pays out three to four times the Cash Surrender Value. This maximizes the benefits of the policy for your client and at the same time provides you, the agent, with a commission. The policy owner must agree to the commission taken by the agent b/c full disclosure on all transactions has become an industry standard. Everything is out in the open for policy owner to see.
Posted: Fri Oct 10, 2008 07:20 pm Post Subject:
D. Put it all on a Corner bet. 8 to 1 payout. Worth a shot.
Posted: Fri Oct 10, 2008 07:34 pm Post Subject:
ha....appreciate the comic relief. Thanks LifeIsGood
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